Functions and Objectives

UNIT 1 FUNCTIONS AND OBJECTIVES OF of Maintenance

MAINTENANCE
Structure
1.1 Introduction
Objectives

1.2 What is Maintenance and Plant Engineering and Management?

1.3 Objectives of Maintenance and Plant Engineering
1.4 Different States of Plant with Reference to Maintenance
Engineering Functions
1.5 Functions of Plant Engineering
1.6 Planning Function in Maintenance
1.7 Organising Plant Engineering and Maintenance
1.8 Staffing in Plant Engineering
1.9 Directing in Plant Engineering
1.10 Co-ordinating by Plant Engineering and Management
1.11 The Interface between Plant Engineering and Management
and Other Departments
1.12 Tero-Technology
1.13 Summary
1.14 Key Word

1.1 INTRODUCTION
From the time man had learnt to manufacture his tools for hunting and fighting, he also
had learnt how to preserve them, sharp them and keep ready to use at any moment he
wanted. He also understood the up keeping (maintenance) of his tools and assets and
found the ways to preserve and enhance their life. This function has been slowly gaining
the importance from that Stone Age to the Modern Age. Yet, in many industries today,
the Maintenance Function is given a low status. Rather, it was considered to be a third
rate job till the middle age, which was unfortunate. The function of carrying out the
maintenance is such an absolute necessity that the subject has been taken for granted over
centuries without much thought being given to its significance in our everyday lives.
Some studies are supporting this argument from the results they revealed that the
equipment utilization was found to be as low as 30% in few cases while 50 to 60% in
many cases. However, in the environment particularly in the Indian context, where the
scarce and limited capital is available to spend for capital equipment, the best method to
increase the productivity is enhancing the useful life of the assets and its maximum
utilization. Therefore, this function has become a challenging job to the Indian industry.
Organizations like National Productivity Council (NPC), Indira Gandhi National Open
University (IGNOU) in addition to a few Universities of India and a few others are
playing a vital role in propagating the importance and significance of maintenance
management in an organization. Maintenance management in a broader sense is named as
Plant Engineering and Management (PEM), as its activities are related to engineering as
well as management. In the views of the most of the people, maintenance is a repair
function only, but it is a combination of any action carried out to Retain, Preserve,
Prolong, Restore (Known as 2P′s and 2R′s of maintenance) the acceptable condition of a
machine or equipment. However, a much wider concept has been assigned to PEM by 5
Maintenance Concepts adding the activities like enhancing Reliability, Availability and Maintainability
(R-A-M) of machine, equipment, assets or tools. And these functions have taken broader
shapes in the modern world with the names like “Physical Assets Management”,
“Terotechnology” and “Total Productive Maintenance”, etc.

Objectives
After studying this unit, you should be able to
• understand the importance of maintenance and plant engineering,
• explain the functions and objectives of maintenance and plant engineering
and management,
• understand and execute the planning function of maintenance,
• organise maintenance by centralized/decentralised system,
• bring out and establish interface between PEM and other departments, and
• plan and organise the Maintenance activities.

1.2 WHAT IS MAINTENANCE AND PLANT

ENGINEERING AND MANAGEMENT?
To keep up your good health, you would visit your family doctor regularly and will try to
follow his suggestions or directions. When you ail by some problem, you approach a
doctor to recover your health. The Plant Engineering and Management is as similar
activity as that of doctor if you assume your body as a machine. Imagine a situation that
a refrigerator or a television in your house fails to work. You would immediately call a
repairman and get it rectified. Such activity of repairman in an organisation becomes the
activity of maintenance or plant engineering.
In many small organisations, the plant engineering activities are done by the production
personnel, while in few other this is carried out by an external agency or call any
appropriate outside parties as and when needed like in the case of repair of your
refrigerator or TV, etc. But in medium to larger industries it is neither so easy nor
economical to call or contract the services of outside parties. Rather it becomes too
difficult sometimes due to non-availability of repairmen in the needed time or too much
of dependability.
The function of maintenance is not just repairing the equipment when it fails, but it more
concerned in preventing it from failing. Further, the maintenance has to find the ways
and means to enhance the useful and productive life of the equipment. However, the
outside parties may not do any justice to these two activities. Therefore most firms often
go for maintaining a separate department of maintenance or plant engineering to look
after the act of enhancing the life or effective and efficient usage of machinery and
equipment.
Let us now define the maintenance* or plant engineering*.
A plant, in industrial jargon, is a place where men, material, machinery and equipment
etc., are brought together to convert the inputs to desired outputs through well-defined
process or method. The plant engineering is to look after this function to run smoothly
without any interruption by keeping the machinery available to the maximum extent
possible. Therefore the maintenance* or plant engineering* is the activity mix of erecting
and installing the machinery, maintaining the good condition, enhancing the useful life,
preventing the failures and restoring the condition of the
machinery /equipment in case of any failures.

Foot Note : *The readers of this book may please note that, strictly speaking, Plant
6 Engineering and Management is the broader concept of Maintenance. But in this
book, both these terms are synonymously used with equal meaning.
Functions and Objectives
of Maintenance

Thus the plant maintenance activity comprises of the following three major activities :
(a) Installation, Erection and Commissioning of equipment or machinery.
(b) Prevention of the failures of the equipment.
(c) Restoring the condition of the equipment in case of failure.
The above technical activities also include some analytical and managerial aspects such
as planning, scheduling the preventive maintenance, analysing the failures and spare
parts management.
In fact, every machine is thoroughly inspected or tested on one hand by the seller before
it is sold and on the other hand by the buyer before it is put into use. Though the user
operates the machine as per the specifications and directions by the Original Equipment
Manufacturer (OEM), even in the idealistic conditions also, there is no 100% guarantee
that the machine will never fail. No machine is immune to failures. And more over as the
machine is put in use; the wear and tear develops on running. These worn-out parts may
lead to machine failure or breakdown and thence to stoppage or shut down for repair or
replacement of parts. At certain times, this may prove very costly or crucial if not acted
in time. The role of plant engineering and management has to inevitably enter at this
moment to restore the condition or to control the machine from further deterioration or
failure. As a matter of fact, the PEM enters the picture much before the failure occurs, i.e.
to prevent the failure to make sense to the proverb “Prevention is better than cure”.
Strictly speaking, the function of Maintenance or PEM begins much before to the activity
of preventive maintenance activity. The activity starts with the erection and installation
of machinery are also taken care by the PEM. In few industries the unloading of
machinery when they are procured, is detached from purchase or stores management and
is assigned to the PEM owing to the reason that the maintenance personnel are well
versed with the knowledge of machine care and method of unloading, etc. In case of
sophisticated machinery this becomes the ultimate necessity.
Activity 1
List out a few organisations you know, who
(i) have plant engineering department in the factory itself.
(ii) contracted the services of outside agencies.
(iii) call the outside parties whenever they need.
And interview them about the problems that they are facing due to the system they
are following.
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1.3 OBJECTIVES OF MAINTENANCE AND PLANT

ENGINEERING
1.3.1 Need for An Objective
The maintenance manager needs an objective for interpreting the goals of the
organisation translated into terms of departmental aims both in long-term
(policy/strategy) and short-term (task) bases. To achieve the design life of the equipment,
safety of the operators, assets and the production out put of the plant a suitable policy is
required to be framed. Thus the maintenance objective should be in accordance and
compatible with the objective of the organisation. At the same time the energy use and
consumption of certain consumables and spare parts is to be optimised. For this the 7
Maintenance Concepts maintenance manager is supposed to fully understand his resources and requirements of
his department as well as that of the organisation. These are exhibited through the
following diagram.

Resources Requirements
Corporate
Objective

Technology Plant Output

Tools and
Consumables Reliability

Plant Engineering and Management

Spare Parts
Plant Life

Energy Quality

Men Safety

Time Standards

Materials Conditions

Information Plant Shine

Maintenance
Objective

Figure 1.1 : Resources and Requirements for Translating the Corporate Objectives
into Maintenance Objectives

1.3.2 Objectives of Maintenance and Plant Engineering

By this moment you might have got a clear picture about plant engineering and its
objectives and goals. Now you may check with the following points, which are
commonly adopted objectives of plant engineering and management (PEM) of an
organisation.
• To maximise the uninterrupted available time of the assets or machinery or
equipment or services to use for the intended purpose for which they were
procured.
• To preserve the value of assets by reducing the rate of deterioration by
maintaining them to work in good condition. For example, lubricating,
removing rust, dust and dirt periodically and applying grease, etc.
• To facilitate the maximisation of output of production by maintaining
utilisation of machinery without affecting its deterioration.
• To perform the maintenance activities in most economical way, such as
restoring the condition of machine at the earliest possible time when it fails
or about to fail, planning and scheduling preventive maintenance without
interrupting the production schedules.
• To update the machine and/or reconditioning with the latest technological or
engineering features.

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In nutshell, the objective of plant engineering is to concern itself with the provision of Functions and Objectives
uninterrupted production process at minimum cost and maximum reliability and of Maintenance
availability.
SAQ1
(a) Define the term Maintenance or Plant engineering. What are the chief
activities of this department in an organisation?
(b) Explain the objectives of Plant Engineering and Management?

1.4 DIFFERENT STATES OF PLANT WITH REFERENCE

TO MAINTENANCE ENGINEERING FUNCTIONS
Often people speak and take an account of the terms such as off time and on time or
productive hours and non-productive hours depending on the running of the plant. Where
as, with reference to the plant engineering and management and maintenance functions
the plant is usually found in one or more of the following states :
(a) On Production. (With or without on line maintenance).
(b) Dead state. (With or without undergoing maintenance activity).
(c) Production outage. (With or without undergoing maintenance activity).
(d) Under shutdown.
(e) Under emergency maintenance state.
(f) Waiting for maintenance.
1.4.1 On Production
This is a state in which the production is going on and there is no loss of out put. Such a
state is the most ideal state that any production engineer or manager desires to have
always. And to retain the same state he would depend again on the maintenance engineer
to maintain his equipment or machinery in perfect condition and operable state. The
maintenance engineer or the plant manager will monitor the equipment without
disturbing his production. This is done while machine is running and hence called on line
monitoring. There exist some small activities such as lubricating, cleaning, inspection
and setting at contacting parts, etc. that will avoid the probability of failure of a machine
and enhance the life. These activities can be performed while the machine is running by
monitoring at suitable intervals. Such activities will not take much time rather will be in
few minutes (five to ten) only and hence will not interrupt the production. Production
State can be considered as two sub-states as Production State with on-line maintenance
and Production State without on-line maintenance. In the former state there may be a
little disturbance in the production rather than any loss of production where as in the
latter one, there is no maintenance activities involved while production is going on.
1.4.2 Dead State
This state of plant is the result of where the machine is not required for production for a
given period of time. And the machine is not taken up for production hence this time is
usually said to be dead time. This is the most suitable time for plant engineering and
management to take up for maintenance such as preventive maintenance or scheduled
maintenance. Commonly the night times, Sundays or holidays or play days, etc. are
considered to be the dead time of the machines as it will not be operated during these
times. There will be no production loss and the maintenance manager can plan and
schedule the preventive maintenance during this time, however the planning and
performing should not exceed the dead time otherwise which may disturb the production.

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Maintenance Concepts 1.4.3 Production Outage
This state of a plant arises due to shortage of stocks or product change over or shift
change over or machine change over time, etc. In such state the production is not
extracted from the machine and seems to be idle for shorter duration. Such shorter
duration also can be made use by the plant engineering and management for effective
maintenance.
1.4.4 Under Shut Down
This is a state of a plant, which comes into existence by stopping the production and
shutting down the equipment for maintenance by preplanned agreement. The moment,
the machine is shut down, it will be handed over to the department of plant engineering
and management. Unlike the above two states like dead state and outage, this is the
stoppage of machine intentionally and purposefully for maintenance and a considerable
loss of production may take place and attributed to maintenance department. However,
this is an anticipated loss of production and hence will be inclusive of the production
plan with a due consideration.
1.4.5 Under Emergency Maintenance State
If the machine fails unexpectedly, it will be referred to the plant engineer to repair and
put it in use at the earliest. This cannot be predicted by any one but may happen due to
any reason such as erratic operation, unsafe conditions, environmental conditions, failure
of a machine member, etc. This maintenance is also known as unplanned maintenance.
1.4.6 Waiting for Maintenance
This state usually occurs to the machine when it fails and gets before a state of
emergency maintenance. When a machine fails unexpectedly, but no spares/material are
available to replace or no repairmen/tools are available or no information or due to non
availability of any resource required to restore the machine in operating condition, this
state is resulted. The production loss is incurred by this state and the extent of the loss is
unpredictable. This loss can be minimized to some extent by adopting a good inventory
control strategy and policy.
These states are summarised through a model in the following Figure 1.2.

Machine Maintenance Maintenance

Objective Strategy
Required

Not Run Not Required Production

Dead State Outage

On Production
Shortage

Agreement
Failed

(Men, Material, Spares, Tools, Information)

Under Emergency Available

Maintenance Resource

Maintenance
Under Shutdown
Maintenance

Not
Available
Feed Back

Waiting for
Maintenance

Figure 1.2 : Model for Plant States (with Reference to Maintenance Objective and Function)
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Functions and Objectives
of Maintenance
Summarily, a plant or machine can be stated to be in one of the two states, namely, Up
State or Down State. The Up State includes the states when the machine is available for
production, i.e. on Production state, Production Outage while all other above mentioned
states are down states during which the machine is not available for production
Activity 2
Consider the machinery such as house hold refrigerator, television, tape recorder,
CD/DVD player, etc. and identify the states they experience in one month and put
the duration of these states in the above model. Based on your findings comment
on the condition and functioning of the equipment.
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SAQ 2
Explain various possible states of a machine, which it may experience in its life.
Support with suitable examples.

1.5 FUNCTIONS OF PLANT ENGINEERING

Plant Engineering Department (PED) will be established in an industry to perform the
following functions :

Erection and
Commissioning Function

Preventive Function
Corrective
Function

Spare Parts
Utilities and
Management Function
Service Function
Functions of
Plant Engineering
and Management
Recording
Function Training
Function

Updating Reconditioning
Function Function

Life Enhancement
Function

Figure 1.3 : Functions of Plant Engineering and Management

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Maintenance Concepts 1.5.1 Corrective Function
This is one of the core functions of the plant engineering. Whenever a machine fails to
perform the intended work in a production department, the production department will
immediately inform to the PED through a maintenance service requisition. The head of
the plant engineering and management will assign the maintenance crew, meant for the
purpose to repair the machine or equipment and restore its condition. The order of
priority or sequence of the jobs of the maintenance will be decided by the head or
in-charge or foreman of the Maintenance/PED. The priorities are usually decided on the
basis of First Come First Serve (FCFS), Earliest Due Date (EDD), Service In Random
Order (SIRO), Any Pre-emptive or Non pre-emptive preferences or Johnson’s and
Jackson’s rules of sequencing or using other operations research techniques like
assignment problem, etc.
Depending on the nature of the organization, type of production and other prevailing
conditions or situations, this function is observed in different forms such as Break-Down
Maintenance (B/D M), Corrective Maintenance (CM), Operate to Failure and Corrective
Maintenance (OFCM), Emergency Maintenance (EM), etc. These are discussed in the
next unit in detail.
1.5.2 Updating Function
Though the machines run at full efficiency, the latest technological developments will
certainly matter to enhance productivity in the form of increased output, ease of
operation, minimum wastage, less time consuming, etc. Owing to this reason, the
plant-engineering department will be insisted by its top management to update the
technological features of the machinery. This function is often referred to as Design out
Maintenance, which not only improves the productivity but keeps the organization alive
or enhances its life.
For example, you have purchased a personal computer with say, 40 GB Hard Disk Drive,
which might be the highest configuration during the time of your purchase. Suppose two
or three years hence, the new configuration is developed in the market where 80 GB Hard
Disk Drive is the latest configuration that everybody is following. In this case it is better
that the 40 GB drive is to be replaced by the 80 GB immediately after two or three years
or at least after one or two more years, otherwise which it will become completely
outdated that it can not even be sold in second sale and just have to be thrown out. Thus,
up dating the configurations or specifications with reference to the changing technology
is very essential otherwise which the declination so continues that the equipment, its
products and the even organization may collapse in the course of time.
1.5.3 Preventive Function
This is another important function of plant engineering department. The Maintenance or
PE Department will prepare a long term and short term schedules to check each and
every machine in regular intervals through out the year. The PE crews will carryout the
inspections, overhauls, lubrication like activities along with checking of the operating
parameters. If required, the worn out parts (if any) will be replaced to prevent further
deterioration so as not to lead to major breakdown or failures. The basic objective of this
function is to forestall the occurrence of the failure. There are several policies in practice
to perform this function. Planned Maintenance, Shut down Maintenance, Productive
Maintenance, Predictive Maintenance, Preventive Maintenance, Maintenance Prevention
etc. are some of these types which will be explained in detail in the next unit.
1.5.4 Recording Function
“Men may come, Men may go; But I go forever” Robert Frost, the famous poet describes
the nature of a river. So also the Maintenance Department continues some people may
join or leave the organisation. The new entrants, particularly, if they are not experienced
in the field or fresh to the field of Engineering/Technology/Management, to facilitate
them, the department has to maintain the operating and maintenance manuals, machine
specification and details of its procurement/installation/commissioning, instructions of
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safety, repair history, preventive maintenance history, etc. The time and cost details of Functions and Objectives
day-to-day repairs and Preventive Maintenance (PM) activities will be recorded in their of Maintenance
logbooks or registers. Based on this information in the logbooks, a weekly/monthly
reports will be generated and subsequently the reliability, availability, maintainability
calculations will be performed. The maintenance department would also maintain a
record of the spare procurement and inventory stock registers of inward, outward
movements, etc.
The manager’s function is not complete if there is no proper feed back system. Many
authors of management speak about authorities and responsibilities of a manager and the
proportion in which they have to be delegated. But they least speak about the
accountability. Every manager has to account for every job he does. In fact, this function
is more significant in maintenance department. The Plant Manager also has to account for
his success as well as failure. This can be possible only if there is a good reporting
system.
However, a good reporting system can be established in an enterprise with
(a) Simplified organisation and the organisation structure.
(b) Well defined programmes and policies without any ambiguity.
(c) Well designed methods of communication.
(d) Smooth relations among the managers horizontally and vertically.
(e) Good Record keeping.
(f) Faith in one another
Recording system provides a good control over the activities and events. Records give
scope for introspection of the managers and the management by which a quality in work
culture can be brought out. A good recording system will bring healthy atmosphere,
unambiguous communications, smooth run of programmes, cordial relationships and
accurate information system. The recording of maintenance jobs are usually figured by
keeping track of the materials used and the labour hours expanded on any one job. The
following are different types of records found in plant engineering.
Recording Labour Costs
Labour hours spent on any one job may be recorded in various ways. Some
companies have each mechanic turn in special card at the end of each day
indicating how much time was spent on each job assigned to him. The rupees
charged to any hour of a mechanics time spent on a maintenance job may be the
actual rupees paid to that mechanic, an average wage figures for all mechanics, or
a figure representing not only average wage but also the overhead of the
maintenance department itself. This latter charge would include such things as
maintenance foreman’s salary, storeroom upkeep, and power used in the shop.
Equipment Records
Records of equipment are a necessary part of every good maintenance program.
Such records include all the pertinent data concerning the equipment itself, such as
serial number, supplier, and initial cost. Such information is of course necessary
when ordering parts or when seeking information about that equipment from the
supplier. A history card might also contain a record of repair work performed, the
schedule for inspections, and the costs of inspection and repair. Repair cost
information is especially valuable, for with such information one can determine
when costs are running much higher than normal – possibly calling for
replacement.
Some companies are now making excellent use of data processing equipment and digital
computers to assist in maintaining maintenance records. One aircraft company utilizes
punched cards to feed data into the system and can get almost immediate answers to such
questions as: who received service, when and where did they receive service, what kind
of service was performed, how much time did the maintenance man spend, what was 13
Maintenance Concepts accomplished, how much did it cost and where are excessive maintenance costs being
incurred. Also, this system is of tremendous assistance in making decisions on what to do
when, to forecast equipment-replacement schedules and so forth.
1.5.5 Training Function
The department feels its responsibility to update the technology, knowledge, skill,
efficiency and effectiveness of their crew and time to time it also conducts the lectures or
workshops to bring the awareness in the machine operators about the cleaning and up
keeping of their machines in addition to upgrading with the technical knowledge updates.
The training function should consist of the following aspects :
(a) Updating the technology
(b) Optimisation techniques for effective utilization of resources
(c) Grievance handling with reference to the work difficulties
(d) Interactive sessions with the experiences of the employees during their
working
(e) Waste reduction, Cost reduction, innovations, etc. in the field
(f) Feedback
The training programmes in maintenance provide the following advantages :
(a) Though the crew is thorough, the training programmes will help them in
upgrading with the technological information for trouble shooting.
(b) It helps in sharing the views of their troubles with other people so that the
similar problems in their areas can easily be solved.
(c) The human behavioural sciences indicate that the joy doubles while troubles
are halved if shared with others.
(d) The performance appraising becomes easier, particularly, during promotions
and awarding merit increments, etc.
(e) Records of these discussions will help for future use.
(f) It develops a culture in people to work more and show effectiveness of
working.
(g) Creates enthusiasm and relieves from fatigue.
1.5.6 Spare Part Management Function
In most of the industries, the inventory of maintenance and repair such as oils, lubricants,
grease, machine spares (bearings, bushes, belts, chains, electrical equipment, etc.) are
taken care by the PED and a separate store will be maintained in coordination with the
PPC, MPC and Purchase department.
The management of spares has many dimensions such as their availability in the market,
the type of market (such as government market, open market, foreign market, etc.) in
which they are available, time or season of availability, size, standards, quality aspect,
traceability, replaceability, compatibility, etc.
1.5.7 Utilities and Service Function
Utilities mean those aspects which supplement the production. The utilities include
telephones, fax machines, compressed air, water circulation, electric power or/and
generator, air conditioners, lighting (both regular and emergency), fire extinguishers and
other safety measures (in many cases the fuels also included such as petrol, diesel,
liquefied gases of gaseous fuels, etc.) will be under the maintenance department. The
department is expected to provide the service in all these aspects along with the machine
servicing.

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1.5.8 Machine Life Enhancement Function Functions and Objectives
of Maintenance
The main motto of PED is to increase the length of the service life of the machinery and
equipment. In the interest of this, the department will coordinate with the production
departments to upkeep the machinery. The maintenance crew also will perform the
activities like removal of rust, cleaning, lubricating, applying grease, etc. to prolong the
useful life of the machinery.
For example a CNC machine will be maintained under specified atmospheric conditions
such as providing air conditioning. Thus with such correct conditions like pressure,
humidity, noise level, dust level, vibration level and temperature, etc. will enhance the
machine life as well as human lives.
1.5.9 Installation, Erection and Commissioning Function
This function of PE is one time activity, i.e. at the beginning of the establishment of the
organisation or whenever a new machine is procured. Once the erection/installation/
commissioning is completed this function will be finished but when the management
takes a decision to shift a machine from one place to the other within the organisation or
when the total firm is shifted to any other place or in the case of expansion, etc. this
function revokes.
1.5.10 Reconditioning Function
As the machines grow old they tend to create lot of problems due to wear out. In such
cases the companies will be under dilemma to replace the equipment owing to their huge
costs. Moreover, the decision making to discard the old machines which incurred huge
investments is very difficult in many cases. Hence the maintenance managers will think
of renovating or reconditioning of the old machine. In this function the old machine and
its base or basic parts will remain same but some parts may be changed. Thus the
machine condition will be restored generally by replacing the worn-out parts and
accessories and in rare cases a few the basic parts may be replaced.
For example a scooter after using it for about 10 to 15 years, keeping all other parts
unaltered, the cylinder may be re-bored to next size and a suitable piston may be replaced
to use for another three to five years.
1.5.11 Maintenance Planning Function
In fact this is most important function sequences, schedules and coordinates all the above
functions. This function starts with forecasting and procurement of the material
requirement, prediction of the failures, monitoring machine health and assigning time and
men to perform the planned activities. Owing to its significance an elaborate discussion
on this function is made in the sections to follow.
Activity 3
List out the functions that are being executed in the organisation where you or
working or familiar with. Rate these functions carried out how effectively or the
percentage of time spent on each function per month.
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SAQ 3
(a) What are the functions of PEM? Explain.
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Maintenance Concepts (b) Explain the following functions of maintenance.
(i) Preventive Function
(ii) Corrective Function
(iii) Training Function
(iv) Recording Function
(c) Discuss the role of maintenance department in machine life enhancement.

1.6 PLANNING FUNCTION IN MAINTENANCE

Planning function in maintenance is the determination of a course of action to achieve
predetermined goals or formulating the expectations between available resources and
required results. In other words, it is deciding in advance what is to be done. Planning
involves in selection of missions and objectives and the approaches and actions to
achieve them. It needs decision making i.e. selecting from alternatives among future
courses of action plans, which can provide a rational approach to accomplish preset
objectives. Planning bridges the gap from where we are, to where we want to go.
In plant engineering Department, the scope of planning function is wide spread. The right
planning can save the time, energy and material. The normal maintenance activities
involving the planning actions are enumerated below.
1.6.1 Normal Maintenance Activities Requiring Planning
Recurring or Repetitive Maintenance Activities
These are to be planned for entire year. However, the preventive maintenance can
be planned in long range based on a distinct predetermined time interval or failure
frequency or machine health conditions. The other maintenance activities such as
repairs and replacements cannot be easily scheduled.
Preventive and Planned Maintenance
We know that prevention is better than cure. The following are very
common and simple activities of maintenance that can be effectively
planned so as to save the time.
(a) Lubrication
(b) Inspection
(c) Overhauls
Corrective Maintenance
The corrective maintenance includes repetitive and regular work that can be
planned on a rolling plans or short range plans. Such plans may have the
following contents.
(a) Repairs
(b) Replacements
(c) Attention to breakdowns
(d) Component reconditioning
(e) Manufacture of spares
Non-recurring or Non-repetitive Maintenance Activities
Alterations, Updating and Modernising
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Under this head we can include the long-range plans of irregular and Functions and Objectives
occasional maintenance such as of Maintenance

(a) Total machines reconditioning or converting a machine to

perform some other functions
(b) Construction and alteration of buildings
(c) Rearranging the layout
(d) Expansions or Extensions
(e) Design out Maintenance activities
(f) Upgrading the configuration of a machine
New Works
This is again a single time plan usually included in long-range plans or
perspective plans if an organisation is already established. However, a new
organisation in its infancy requires this planning. The activities often found
in this category are
(a) Installation of new machines
(b) Establishment of new structures
(c) Construction of new building or a floor on already existing
building
(d) Creating a new facility
(e) Commissioning a new system
1.6.2 Steps in Planning of Maintenance Work
In planning of maintenance work following steps are involved :
(a) Forecasting or Anticipation of maintenance work
(b) Visualisation of the nature and details of that work
(c) Determination of the best method to perform the work
(d) Arranging for the required material
(e) Securing alternatives in production programme of scheduling maintenance
work to confirm to production plans
(f) Allocation of work to individuals
(g) Instructing the individuals about schedules and methods
(h) Following up and checking of work
(i) Evaluation of the work and performance.
The above steps are discussed in the following paragraphs.
1.6.3 Forecasting and Anticipation of Maintenance Work
The most important function of maintenance planning is forecasting or anticipation of
future work. This can be done by information provided by the following sources :
(a) Instructions and guidance given by manufacturer of the machines
(b) technical knowledge of the maintenance and production personnel
(c) knowledge of the degree of the utilisation of machine
(d) record of the behaviour of the machine and of work done on it
(e) complains and requests from production personnel on basis of difficulties
experienced by them while operating the machine
17
Maintenance Concepts (f) examination of the state of various parts of the machine during their life
span
1.6.4 Visualisation of Nature and Details of Work
Planning for materials, manpower, methods and time required for a job depends on the
nature and details of the job. Visualisation of the details of the work can be done on the
basis of information provided by the operating personnel and the nature of trouble
experienced. Reports of inspectors should indicate the part needing attention and the type
of attention required. Drawings of the machines should be used to determine the machine
work required repairing, removal and replacing the defective parts. The discipline of
method study aids should be taken in to account while the decision regarding the most
effective methods of performing the work is to be taken by maintenance engineers.
1.6.5 Planning and Scheduling Maintenance Activities
It has been said that the tools of good maintenance are planning, scheduling, and cost
accounting. The planning and scheduling section of the maintenance department has the
basic responsibility for establishing job priorities, for insuring that necessary tools and
materials are available and for preparing and issuing written schedules of jobs to be done.
The size and organisation of the planning and scheduling group will depend on the size
and complexity of the maintenance organization. In a small company, the maintenance
supervisor may perform all of the planning and scheduling. Under such circumstances the
planning and scheduling will probably be handled on quite an informal basis. Large
companies utilize a special group to plan and schedule jobs. Although much of the work
done in this section is clerical in nature, the supervisor of the group should be a person
with broad experience in maintenance methods. Such knowledge frequently is necessary
to coordinate the scheduling of the workmen in the maintenance department.
In order to do the necessary day-to-day and long-range planning required to make most
effective utilization of the maintenance personnel suitable routines are necessary. These
will involve :
(a) The securing of necessary approval from the plant engineer for any projects
that are of sufficient magnitude to require his attention;
(b) The securing of information from equipment records, work orders, work
measurement data, craft and shops work force reports, storekeeper’s
procurement reports, the plant production schedule, and other pertinent
sources; and
(c) Reference to existing master schedules. As is true of all scheduling
activities, basic to maintenance scheduling and control is an estimate of the
time required for each work order prior to doing the work.
The scheduling of maintenance work involves essentially two steps – a master plan of all
jobs that can be predicted in advance and a daily adjustment of this plan necessitated by
emergencies. In most plants there are a number of machines and inspection and overhaul.
The frequency of these occurrences will vary with the equipment, but experience figure
subjected to suitable mathematical and statistical analysis will indicated the optimum
time for the minimum over all costs. After these times have been established, they can be
incorporated into the master maintenance schedule.
The master maintenance schedules may be broken down into weekly or daily
maintenance schedules. If used, the weekly work schedule will provide information to
each craft and shop concerning the work to be done on each job for each day in the
following week. This schedule would normally be issued every Thursday or Friday and
would be the basis for each maintenance foreman to issue daily work assignments to the
workers. Some maintenance departments prefer to centralise this function and have daily
work assignments issued directly by a dispatcher in the job control section. Whatever
system is used, it is sound practice to issue work assignments for the next day to each
craftsman prior to the end of the workday.
18
Accurate information on the number of hours of labour spent on each job any materials Functions and Objectives
used are essential items for cost-accounting purposes. These charges are made against the of Maintenance
pertinent departments and become one of the costs of manufacturing. Further, the costs
provide a check on the operating effectiveness of the departments concerned.
SAQ 4
(a) Discuss the functions of planning in maintenance.
(b) Discuss the areas in Maintenance and Plant Engineering that needs good
planning.
(c) What do you understand by the term ‘Maintenance Planning’? What are
different phases involved in Maintenance Planning?

Activity 4
Narrate the planning activities performed in the Plant Engineering department of
the organisation where you are working or the one with which you are most
familiar. Discuss the points where you are lagging and leading.
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………

1.7 ORGANISING PLANT ENGINEERING AND

MAINTENANCE
There is no one-best maintenance organization that can be used in all cases. The
organization should be tailored to fit the particular technical, geographical, and personnel
situations involved. In establishing the maintenance organizations it should be recognized
that the basic necessity is to maintain a plant at a level consistent with low cost and high
productivity.
Considerable debate takes place among maintenance engineers as to the level to which
they should report. Some are of the opinion that they should be under production whereas
others think that they should be on equal footing with the production whereas others
think that they should practice to have the director of the maintenance function report to
the level that is responsible for most of the other plant groups that the maintenance
engineers serve.
The nature of the industry, that is whether it is primarily electrical, chemical, or
mechanical, will have considerable influence on the maintenance organization. Also, the
size of the plant and the scope of activities to be performed are significant factors that
will affect the organization. In a small plant utilizing a minimum of mechanical
equipment, the maintenance department might consist of an all-around mechanic and a
helper or two. In larger companies the maintenance group would be much more lavish
and contain a variety of craftsmen.
The person in charge of the maintenance engineering activities is usually an engineer and
most frequently carries the title of plant engineer. Other titles of designations in use
include superintendent of maintenance and manager of maintenance. Plant Engineer in
the maintenance organization is also expected to perform functions of supervising the
power plant operation, the design of special pieces of equipment, the checking of
19
Maintenance Concepts installation specifications and the planning and scheduling of major maintenance
projects.
One of the noteworthy features of most maintenance organizations is the large number of
crafts represented in the group. This number will vary considerably depending on the
variety of manufacturing processes present and the amount of work involved. Another
factor that will influence the number of craftsmen required is the availability of skilled
outside contractors and management policy regarding the use of outside maintenance
organizations. It is difficult to present any basis for determining exactly how many
people are necessary in each craft in the maintenance organization. The ratio of
maintenance to production employees will vary with the level of machinery and capital
investment per operating employee and the efficiency of the maintenance organisation.
An important part of the organization structure is the job and cost control section. This
section is responsible for scheduling work for the maintenance personnel and for
maintaining cost figures on all jobs. It makes possible the efficient utilization of the
craftsmen anywhere in the plant but at the same time does not prevent localized routine
daily assignments.
Machine and repair shops and storerooms provide essential supporting sections within
many maintenance organizations. The shops commonly contain machinists and
mechanics capable of repairing equipment, making new parts (otherwise not available)
and rebuilding equipment. The storerooms maintain spare parts (bearings, shafts, electric
motors, pumps, etc.) and general maintenance materials (pipe fittings, standard hardware,
light bulbs, switches, lubricants, etc.) needed by the maintenance force.
Other service groups that are commonly under the supervision of the plant engineer are
the utilities engineering section and the housekeeping and protective service groups. The
former is responsible for the operation of the power and heating plant and the other group
is responsible for keeping the plant clean and protecting the premises.

1.7.1 Maintenance Organisation

The organisation set up depends upon the system of maintenance adopted and the nature
of industry. Maintenance organisation can be centralised, decentralised or a judicious
combination of both. Generally the big industries prefer the combination of centralized
and decentralised system. General aspects of this combined system are described here.
Centralised Maintenance group (directly controlled by the Chief of Maintenance) is
responsible for major overhauls, breakdown maintenance and scheduled maintenance.
Plant Maintenance Group (working under respective Plant Manager) is responsible for
Preventive Maintenance (which includes operators’ tasks), lubrication schedule, minor
repairs and adjustments.

1.7.2 Systems of Plant Engineering and Management

Centralised and Decentralised Systems
For performing any function, a systematic way is to be first established. The
systematic approach not only enhances the efficiency of the work but also provides
a good environment, builds up good relations, demarcates the responsibilities and
authorities. A good control over the men and their operations also are contributed
by following an appropriate system. (The managers of systems school of
management thought believe in the principle that “Set up an appropriate system, it
will in turn set you up to in correct path”).
As mentioned above the most common systems adopted for PEM are :
(a) Centralised Plant Engineering System (CPES).
(b) Decentralised Plant Engineering System (DPES).

20
Depending on the suitability, feasibility and the requirements an organisation will Functions and Objectives
adopt one of the systems or in some proportional combination of the two. of Maintenance

Centralized Plant Engineering System

Centralised plant engineering is a set up in which the head of PED will have
all the maintenance staff under him and will send to attend the breakdown as
per the requisitions sent by various departments according to some
predetermined rules of priorities. Apart from the repairing activities, the
PEM also schedules to take care of failure preventive measures, increasing
the machine life, etc. in such a way that it will hardly interrupt the regular
production while the available production time is enhanced as maximum as
possible. In this system every matter related to the machines will be
executed with the knowledge of the plant engineering.
Decentralised Plant Engineering System
In this system the Plant Engineering activities are split into some groups.
There are three such ways in general practice. The first way is to split the
department into convenient number of wings like mechanical maintenance
wing, electrical maintenance wing, electronic maintenance wing, utilities
and services maintenance wing, etc. The second way is to divide into the
groups like breakdown maintenance groups, preventive maintenance group,
Reconditioning group, etc. The third way is to split the maintenance crew
into number of teams equal to that of the number of production shops and to
look after all maintenance jobs related to their respective areas. The concept
of specialisation and Taylor’s scientific management principles are followed
in this system.
1.7.3 General Functions of Central Maintenance Group
Following are the general functions of central maintenance group :
(a) Planning for maintenance and overhaul schedules in consultation with the
plant maintenance group and Works Management.
(b) To carry out all heavy repairs and major overhauls.
(c) Operation and Maintenance of the central services.
(d) Planning for spare parts, maintenance material and tools.
(e) Planning for manpower and their training.
(f) Preparation for Annual Maintenance Budget and periodical review.
(g) Recommendation on replacement policy and additional purchase policy.
(h) Study of defect reports, suggested modifications, suggestions, etc. and
making recommendations.
(i) Surprise inspection to cross check that maintenance at site, carried out as per
directions laid down.
1.7.4 General Functions of Decentralised Plant Maintenance Group
Important functions of Plant Maintenance Group are :
(a) Lubrication as per scheduled programme.
(b) To carry out running repairs and preventive maintenance at site.
(c) Routine inspection of equipment as per check list.
(d) Forecasting requirement of spare parts, etc.
(e) To initiative recommendations about modification, improvisation, etc. for
improving equipment efficiency.
(f) Advice central Maintenance Group on overhaul schedules. 21
Maintenance Concepts 1.7.5 Decentralisation in Plant Engineering
What is Decentralisation?
Decentralisation is open to a number of interpretations. In administration, it may
be used to refer to
(a) Departmentalizing activities
(b) Location of actual performance or
(c) The dispersal of the centres of authority and decision making at
various levels in the organisation.
Centralisation is the systematic and consistent reservation of authority by the top
management or the management at the centre (say, in the case of an organisation
comprising branches) while decentralisation consists in the dispersal of authority.
It must be remembered that complete centralisation is impossibility because a
management is impossible without some measure of delegation of authority.
Likewise, complete decentralization involving freedom (in place of autonomy) for
the various divisions or departments will amount to virtual disintegration. Between
these two extremes where the authority is largely concentrated at the top and
mostly the authority to execute given plans is given to the personnel at lower
levels, the organisation is said to be centralized. On the other hand, where much of
the authority to plan, direct, execute and control is passed down the organisation
and the top management is concerned with broad planning and control, it is
described as a condition of a high degree of decentralisation. We are here
concerned fundamentally with decentralisation in Plant Engineering Department in
the sense of the systematic effort to delegate to the lowest levels of all authority
except that which can be exercised at central points. In other words,
decentralisation here refers to the dispersal of the centres of decision-making
throughout the organisation.

1.7.6 Distinction between Delegation and Decentralisation

However, decentralisation should be distinguished from delegation. Delegation can take
place from one individual to another to complete the process while decentralisation is
completed only when the fullest possible delegation is made to all, or most of the people
who are delegated a specific kind of responsibility. If the general manager asks one of the
Plant Managers to recruit some executives on his behalf, it is an instance of delegation.
On the other hand, if this authority is delegated to all divisional managers for all cases of
recruitment, it becomes a case of decentralisation. Up to the authority to their
subordinates, decentralisation is carried further down in the organisation. “If delegation is
practiced systematically in all functions and divisions of the company and for a wide
range of authorities and responsibilities, we should say the company is highly
decentralised.”
The difference between delegation and decentralisation may be highlighted as under :
(a) Delegation is a process while decentralisation is the end-result of a
deliberate policy of making delegation widespread in the organisation.
(b) Delegation takes place between a superior and a subordinate while
decentralisation involves delegations as between the top management and
the departments or divisions of the organisations.
(c) Delegation is a must for management as no manager can get things done
through people unless he passes on the requisite authority for the
performance of the work assigned. Decentralisation is optional i.e. the top
management may or may not decide to disperse authority as a systematic
policy.

22
(d) In delegation control rests entirely with the delegation but in Functions and Objectives
decentralisation, the top management may exercise the minimum of control of Maintenance
in a broad way and delegate the authority for controlling also to the
divisions or departments concerned.
The extent of decentralisation is judged on three tests:
(a) What kind of authority is delegated? Is it authority to plan and decide?
(b) How far down in the organisation is it delegated? (Does it go down to the
lowest supervisory level?) and
(c) How consistently is it delegated?
On the whole, a centralised organisation is one in which detailed and comprehensive
planning is done by the chief executive or by a small group of high-level managers. Most
decisions are made at the higher managerial level in centralised organisation. On the
other hand, in a decentralised organisation operating decisions are pushed down to the
lowest level.
1.7.7 Factors Affecting Degree of Decentralisation
The degree and the nature of decentralisation in any organisation will be generally
influenced by the following factors :
History of the Organisation
Whether it has developed as a set of departments and divisions and the control still
resting with the top management.
Philosophy of the Top Management
Whether the top management believes in centralisation or delegation of effective
powers of planning and controlling.
Availability of Competent Subordinate Managers
Whether competent executives are available to take effective decision to carry out
the job passed down by the top management.
Dispersion of Operations
Whether the operations of the organisation are mostly concentrated at one place or
in a region or dispersed over different territories.
Costliness and Significance of Decisions
Whether the decisions generally involve heavy cost or investment making it risky
to delegate.
Uniformity of Policy
Whether the uniformity of policy is of critical importance, if so, decentralisation
may be limited.
1.7.8 Advantages of Decentralisation
Decentralisation of Plant Engineering is recommended on account of the following
advantages.
Lesser Burden on Plant Manager
Centralisation places too heavy a burden on the plant manager who alone is
responsible for planning and decision-making. In most occasions the decision has
to be taken on the field or work spot. In a decentralised set-up, the subordinates
share the burden of decision-making and leave the plant manager concentrate on
overall planning and control.
Possibilities of Diversification

23
Maintenance Concepts A centralised enterprise with the concentration of authority in single individual at
the top will find it difficult to diversify its activities and start new lines of
distribution. On the other hand, under a decentralised set-up, diversification is
facilitated. This enables the concern to make up any losses in certain lines by gains
on the other lines and thus reduces the risks of business.
Executive Development
Decentralisation gives power and initiative and responsibility to a number of
executives. This provides a spur to the development of executives in the
organisation.
Improvement of Morale
Decentralisation stimulates the formation of small cohesive groups. Since local
managers are given a large degree of authority and local autonomy, they weld their
people into well-knit groups. With high degree of participation, constant efforts
these managers are able to motivate the subordinates extremely well and secure a
high degree of morale among them which is very essential for the employees
working in plant engineering.
1.7.9 Drawbacks of Decentralisation
Decentralisation of organisation, though commendable in many ways, has some
drawbacks or limitations, which may be enumerated as under :
(a) It creates problems of co-ordination because authority lies dispersed widely
throughout the organisation under such a set-up.
(b) It may hamper the development of specialised services like maintenance
departments because of diversity of thinking.
(c) It becomes a handicap of support from top management in case of quick
emergency decisions.
SAQ 5
(a) Write a note on Organising Maintenance Department. Draw an
exemplary/hypothetical organisation chart and explain it with reference to
Maintenance department.
(b) Distinguish between the Centralized and Decentralized systems of plant
engineering.
(c) Distinguish between the decentralisation and delegation, with suitable
examples. Do you think that decentralisation is helpful in increasing the
efficiency of the plant engineering department? Discuss your answer with
supporting evidences or examples.
(d) Discuss the advantages and disadvantages of centralised plant engineering
department.
(e) Discuss the advantages and disadvantages of decentralisation with reference
to plant engineering department.
(f) Explain the factors affecting the degree of decentralisation. Give suitable
examples with plant engineering department.
Activity 5
(a) Discuss some practical experiences you had with decentralisation and
delegation of power or authority.
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
24
(b) Draw the internal and external organisation charts of plant engineering Functions and Objectives
department in the organisation where you are working or the one with which of Maintenance
you are most familiar.
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………

1.8 STAFFING IN PLANT ENGINEERING

Peter Drucker assigns three responsibilities to management viz. managing work,
managing workers and managing managers. The staffing function of management
involves the discharge of the second and third of these responsibilities. Staffing function
involves in filling the positions in the organisation structure. This is done by identifying
requirements of work force and force to managing this force. The staffing encompasses
recruiting, selecting, placing, promoting, appraising, career planning, compensating and
training or developing both aspiring candidates and current job holders so that tasks are
accomplished effectively and efficiently. This function is very challenging in the
maintenance/plant engineering since the staff required for Plant Engineering must have
sound knowledge, highly skilled, spontaneous action, accept challenges, willing to risk
bearing and should be fully aware of all the facets of the job.
Staffing function is continuous and is performed by the maintenance management even in
a going concern too since it covers the processes of developing work skills and
executives. The planning of executive or managerial resources, the planning and
administration of management development programmes, the appraisal of executive
performance and the administration of executive compensation are all parts of the
staffing function of management in an established organisation. In a single sentence
staffing can be defined as “Assigning right men to the right job”. Lawrence Appley
writes “managers would be more skilled and competent if they were carefully selected,
specifically trained, continually kept up to date in their field of activity, guided in their
development for the assumption of greater responsibility and adequately rewarded.” And
this is to be carefully digested and applied by the top management, particularly to Plant
Engineering department since every manager or engineer and his staff at their own level
willfully takes high risk and greater responsibility.

1.9 DIRECTING IN PLANT ENGINEERING

According to the above statement, the managers have the responsibility not only of
staffing (apart from planning and organising the operations) but also of guiding and
supervising the subordinates. This is the managerial function called directing.
The function of directing has three essential and elemental activities. These are :
(a) Issuing of orders and instructions,
(b) Guiding and teaching the subordinates in the proper methods of work, and
(c) Supervising the subordinates to ensure that their performance conforms to
the plans.
The above three activities performed through the following aspects, which are supposed
as the sub-functions of this important managerial function such as Leadership,
Communication, Motivation, Supervision and Controlling.

25
Maintenance Concepts
1.10 CO-ORDINATING BY PLANT ENGINEERING
AND MANAGEMENT
The accomplishment of group goals becomes impossible if there is no harmony of
individual efforts. All the functions of management are just meaningless if there is no
coordination. In fact, each of the managerial function is an exercise contributing to
coordination. In any organisation, individuals often interpret similar interests in different
ways and their efforts towards mutual goals do not automatically match with the views
and efforts of one another. It becomes the central task of the manager to reconcile
differences in approach, timing, effort and interest and to compromise individual
objectives to contribute to organisation goals.
Consider the following case, which can often occur in an industry.
A lathe machine has to be purchased for the production. The General Manager conducted
a meeting with all the departmental heads working under him to decide the make, type
and whether to buy a new one or second hand and so forth. In the meeting all managers
are given a chance to speak.
(a) The Finance Manager proposed to procure the machine that works out to be
the least in cost.
(b) Industrial Engineer expressed his preference to most ergonomically
designed machine.
(c) Purchase Manager feels it is better to purchase a machine from a supplier
who can offer discounts or free transport or some other advantage or benefit.
(d) The Accounts Manager opted to procure the machine with a supplier who
can wait longer for payment of the bills owing to the prevailing weak
financial position of the company.
(e) The Production Manager wanted the machine that can produce highest
output.
(f) Manager of Quality Assurance Department insisted upon the process
capability of the machine and hence suggested the machine that can produce
best quality components with high degree of accuracy.
(g) The Human Resource Development Manager stressed on the machine high
degree of safety.
(h) The Maintenance Manager asked to go with the machine with trouble free
operations, good condition and which has longer life.
The General Manager has now the real task of coordinating all these people more than
the planning, organising, staffing and directing. His decision must be most convincing to
all the managers as the every manager’s basis is right in their angle for the argument. In
such situations the plant engineer can only help the general manager for achieving good
coordination amongst all because maintenance is the only department nearest to all the
other departments and the one who can convince all others to their satisfaction.
Similar to such cases often occurs in our daily life too. The best coordination results
when individuals have a vision how their jobs contribute to the goals of an enterprise.
And this is possible if the managers have clarity of understanding on the goals of the
organisation as well as on their own individual goals. Otherwise, each would be driven
by individual ideas and it may become a mess finally. To avoid such splintering efforts,
the dominant goal of the enterprise should be clearly defined and communicated to all
concerned. And obviously, the Top Management has to define the goals of subordinate
departments to contribute to the goals of the enterprise. For all this often, the Plant
Manager will be entrusted to coordinate to find the optimum mix of the individual goals
to achieve the goal of the enterprise.
According to Mary Parker Follet, the good coordination can be achieved through the
following principles.
26
(a) Early beginning (coordination is to be sought at the early stages and later it Functions and Objectives
may become difficult). of Maintenance

(b) Direct contact (to avoid misleading, misunderstanding and red-tapism).

(c) Reciprocity (both the parties are equally responsible it is reciprocal).
(d) Continuity (coordination is not a one time job but is continuous process)
1.10.1 Plant Engineering and Management as Integrating Function
To integrate is to join, combine or link together. An important aspect of the function of
management of Plant Engineering Department is integration.
To accomplish the objectives of an organisation, management has to establish two types
of integration :
(a) External, and
(b) Internal.
External integration means linking the objectives of the organisation to the needs of its
external environment consisting of the Production shops, customers/consumers, society,
labour, suppliers of materials and equipment, investors and financiers, government and
such other bodies on which its survival and growth depends. In order to successfully pilot
the aircraft of the organisation, management will involve maintaining good relations with
each of the various sections mentioned above and earning their goodwill as also
providing tangible and intangible benefits to them so that they continue to provide
support and patronage to the organisation. If for example in setting its objectives, the
management overlooks payment of fair wages to employees or proper quality of goods
and services to consumers or for that matter timely payment of taxes to the government,
it will lead the organisation into rough weather.
Internal integration refers to proper management of operations by harmonically working
of various departments and linking up the allocation of resources (human as well as
physical) with the objectives and priorities set as a result of external integration. A very
crucial part of internal integration is the integration of employee efforts into company’s
plans and programmes. This will involve the linking and reconciliation of individual
goals with the organisational goals.
In short, management consists in setting and adjusting the organisational goals to meet
the needs and demands of various parties in the environment and achieving these goals
by creating the right internal environment for people to make their best contributions.

1.11 THE INTERFACE BETWEEN PLANT

ENGINEERING AND MANAGEMENT AND
OTHER DEPARTMENTS
Though plant engineering is concerned with the restoring of machine condition and
preventing the failures, yet it has relation with each and every department of the
organisation. Right from gang man (gm) to General Manager (GM), every employee of
the organisation needs the assistance of plant engineering services at one or the other
time. The Figure 1.4 depicts a few relations and interactions of different departments in
various aspects.

27
Maintenance Concepts

Figure 1.4

Now, we can derive the following relations from the above Figure 1.4.
(a) Plant Engineering Management (PEM) is related to production departments
very closely in many aspects, in fact, its very purpose of establishment is for
the production departments such as erection, installation, commissioning,
overhauls, lubrications, preventive maintenance, shifting of the machinery,
updating and providing utilities like air, water, air conditioning, etc. repair,
reconditioning and up keeping.

28
(b) PED interacts with PPC to plan the maintenance schedules so that they will Functions and Objectives
not clash with production schedules. It also reports the cost of maintenance, of Maintenance
spares and utilities or services, etc.
(c) PED raises its budget requirements in the beginning of the financial year
and reports the cost of spares, utilities, day-to-day activities, etc. regularly or
periodically to finance or/and accounts department.
(d) It has a relation with personnel department with reference to the wages, time
office, welfare and disciplinary measures apart from the recruitment and
training. Often PE looks after the safety engineering activities and it
involves the personnel department for compensations and other related
benefits.
(e) In connection with the work measurement, incentives and Target-fixing, etc.
the PEM seeks the help of Industrial engineering department (IED).
Perhaps, it may look strange if it is stated that the IED seeks the help of
PEM, but it is the truth that IED requires the information about knowing if
there is any chance of enhancing the production on a machine or revising the
targets in relation with the condition of machine and the effect of
reconditioning on productivity, etc.
(f) Purchase department, materials department and stores are coordinated by
PED in case of procurement of spares, tools, consumables, oils and gases,
etc. Usually a store will be managed by PED itself, with the inventory
generally referred to as M-R-O (Maintenance-Repair-Operating)
inventories. However the Production Planning and Control (PPC) will
generally coordinate with the purchase department and PED in
procurements in most of the medium to large-scale industries.
(g) PED will contact and develop outside parties also to recondition to solve
major problems, which cannot be solved by internal personnel due to
inadequate facilities or skill or knowledge, etc. It also keeps in contact with
the OEM to seek their help in trouble shooting especially in
warrantee/guarantee period. Sometimes this will be done for updating of
machinery with the latest technology also.
(h) It keeps in touch with material suppliers for spare part management and with
the departments connected with the utilities like electricity board, telecom
department, water works department, etc.
(i) PED is sought for the help by each and every department of the organisation
for failures of their office equipment such as fans, air conditioners,
intercommunication telephones, electricity, etc. including the street lights
with in the organisation premises.
Activity 6
(a) Discuss the reporting system and records you are aware of with your plant
engineering department. Suggest some modifications/rectification if
required.
………………………………………………………………………………..
………………………………………………………………………………..
………………………………………………………………………………..
(b) Visit an industry and interview the plant-engineering manager about his
interactions with various departments and parties. Also interview other
managers of various departments about their interactions with the PE
department. What extra interactions have observed?
………………………………………………………………………………..
………………………………………………………………………………..
……………………………………………………………………………….. 29
Maintenance Concepts

SAQ 6
(a) Discuss the importance of co-ordination function with reference the plant
engineering and management.
(b) Plant engineering is an integrating function – Discuss.
(c) Discuss the function of directing with reference to the plant engineering and
management.
(d) Plant Engineering serves and concerns for everyone of the organization.
Support the statement with examples.
(e) Explain the interface between the PEM and various people in outside the
organization.
(f) If mismanaged PEM leads to heavy losses to the organization. Comment.

1.12 PHYSICAL ASSETS MANAGEMENT OR TOTAL

PRODUCTIVE MAINTENANCE OR
TERO-TECHNOLOGY
The term Physical Assets Management (PAM) is synonymous to Total Productive
Maintenance (TPM) and tero-technology. It takes into account all aspects of plant
machinery from DESIGN TO DISCORD, viz. Design, Manufacture, Installation,
Commissioning, Maintenance, Replacement and Removal of the plant/equipment plus the
Feedback of performance for the equipment manufacturer. Tero-Technology envisages
application of the combination of managerial, financial, engineering and other practices
applied to physical assets in pursuit of economic Life Cycle Costs (LCC). It is concerned
with the specification and design for reliability and maintainability of plant, machinery,
equipment, buildings and structures. This total LCC concept enables proper equipment
evaluation and selection so as to give an overall low LCC. This gives rise to huge
potential for savings in terms of cost effectiveness of replacements on considerations of
whole life cycle. ‘Design Audit’ consists of crucial scrutiny of the designs by the
operating and maintenance engineers independent of the design process so as to ensure
reliability and maintainability of plant and machinery and to identify weaknesses in
designs requiring modifications. The word ‘tero-technology’ stems from the Greek root
‘terein’ – ‘to look after’. ‘to guard over', and ‘to take care of’. The principles of tero-
technology as discussed above can be applied, to a greater or lesser extent, to any
physical asset in any organisation, no matter what the size of degree or complexity of
either asset or organisation is.

1.13 SUMMARY
There should not be any iota of doubt to make a statement that Plant Engineering and
Management will increase the productivity of an organisation if managed properly. But
any mismanagement or unorganised way of working will result in a danger of huge
losses. Quite a few evidences are noticed from many organisations that in most of the
situations the Plant Engineering and Management is blamed for the loss of production.
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The middle level production managers will feel that their machines are not updated, not Functions and Objectives
made available for more time due to shutdowns, improper maintenance, waiting for of Maintenance
spares, absenteeism of maintenance crew, etc. Obviously, the Plant Engineering and
Management will usually be held responsible for loss of production. This atmosphere
frequently leads the managers to search for the reasons to escape at times. In such cases it
is also noticed that one manager would try to pull others' legs and the relations will spoil.
However, every employee of the organisation should realise that they are working for the
growth and prosperity of the organisation. In connection to this it is everybody’s
responsibility to upkeep the machinery and equipment and to keep them neat and tidy for
enabling to Preserve, to Prolong the life, to Retain and to Restore the condition of the
equipment.
In nut shell, the Plant Engineering and Management exists in the organisation to Preserve
assets, Prolong the life of the assets, Retain their good condition and Restore the
acceptable condition of the machinery or equipment or asset if they fail. To achieve these
objectives the PEM organises in either centralised or decentralised system or a mix of
both (based on the advantages and disadvantages the organisation may derive out of the
system) to execute the functions like corrective (breakdown), preventive, productive
maintenance, spare parts management, etc. It also looks after the erection, installation,
commissioning of the new equipment, shifting of the machinery, providing utilities like
water, compressed air, inter communication services etc. The maintenance even
undertakes the activities like updating the technology and reconditioning of the
machinery, etc. In this connection it interacts with various internal departments such as,
with production to perform the aforesaid functions, with finance in budgetary decisions,
with accounts in cost analysis, with personnel in training and compensation against
accidents, with PPC in preparing PM schedules. Apart from these, PEM interacts with the
out side parties also such as material suppliers, OEMs, vendors, sub-contractors,
electricity, telecom, water works, fire stations, etc. the planning function is elaborated
due to its high importance in present scenario. The staffing, directing, coordinating are
also discussed with reference to the functions of maintenance or plant engineering and
management. In present days, the maintenance or plant engineering has taken a new
shape and dimension in the form of Physical Assets Management (PAM) or Tero-
Technology (TT) or Total Productive Maintenance (TPM). These concepts are also
introduced in this unit.

1.14 KEY WORDS

Plant : A place where men, material and machines are
brought together to convert the inputs into the
desired outputs in a well defined methods.
PEM : Plant Engineering and Management is that part of
organisation to preserve the assets, prolong the
life, retain the condition of the equipment/assets
and restore the condition when it fails.
OEM : Original Equipment Manufacturer is a person or a
group or an organisation that manufactures the
machine or equipment or an asset.
Reconditioning : The activity of regaining the condition of a
machine or equipment when its efficiency or
performance comes down or deteriorates to nearly
its scrap value level.
Erection : The act of arranging or keeping the machine or
equipment in its position as per the layout.
Installation : The act of arranging the machine in position and
keeping in usable condition.
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Maintenance Concepts Commissioning : The function of keeping the machine in working
condition to its full efficiency.
Break Down : Failure resulting in the non-availability of an item.
Down Time : The period of time during which an item is not in a
condition to perform its intended function.
Overhaul : A comprehensive examination and restoration of
an item or major part there of to an acceptable
condition.

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